EXAMINING THE IMPLEMENTATION CHALLENGES OF THE 3% HOST COMMUNITY DEVELOPMENT TRUST FUND UNDER THE PIA: A STUDY OF REFINERY HOST COMMUNITIES' EXPERIENCES AND PERSPECTIVES

Abstract

This study examined the implementation challenges of the 3% Host Community Development Trust Fund (HCDTF) under the Petroleum Industry Act (PIA), focusing on refinery host communities’ experiences and perspectives. The study adopted a descriptive survey research design and collected data from 200 respondents selected through a multi-stage sampling technique. Data were gathered using a structured questionnaire measured on a five-point Likert scale and analyzed using descriptive and inferential statistics. The findings revealed that the extent of implementation of the HCDTF in refinery host communities is low, indicating a significant gap between policy provisions and actual practice. The study further found that institutional and governance challenges, such as lack of transparency, weak regulatory enforcement, and dominance of oil companies in decision-making, significantly affect implementation. In addition, socio-political and operational factors, including internal community conflicts, elite capture, poor project planning, and lack of technical expertise, were identified as major constraints influencing the effectiveness of the fund. The results of the hypotheses showed that both institutional/governance challenges and socio-political/operational factors have significant effects on the implementation and effectiveness of the HCDTF. The study concludes that although the fund represents a major policy intervention aimed at promoting sustainable development in host communities, its impact is limited by systemic and contextual challenges. The study recommends stronger regulatory enforcement, improved transparency and accountability, and enhanced capacity building for community stakeholders to ensure effective implementation of the fund and achievement of its intended objectives.